Engaging the Base of the Pyramid
in Scaling Impact

Inclusive business models (IBM) incorporate the base of the pyramid in their core value chain. Financial returns are at market rate and their primary funding type is commercial. Typical investment size in IBM can range from $5 - $ 200 million. The companies are either large or medium-sized and can be family-owned or multinational in nature.

Inclusive business activities engage the BoP in ancillary activities expecting both market rate and below market rate returns. Funding type is typically commercial and investment sizes range from USD 300,000 - USD 3 million. Both large and medium sized companies engage in IB activities and such activities can be considered a form of strategic corporate social responsibility.

A Social Enterprise Initiative in Inclusive Business engages the BoP in either an ancillary activity or within the core value chain. This type of engagement is not typically profit-maximising and draws on mixed funding types including both grant and commercial funding. SE Initiatives are usually small in size and run by impact funds and high net worth individuals.

Market Readiness: Medium

Growth Potential: Medium

Critical SDG areas: (i) Zero Hunger, (ii) Good Health and Well-Being, (iii) Industry, Innovation, and Infrastructure, (iv) Reduced Inequalities, (v) Climate Action, (vii) Life below Water, (viii) Peace, Justice, and Strong Institutions

Market Readiness: Medium

Growth Potential: Medium

Critical SDG areas: (i) Zero Hunger, (ii) Good Health and Well-Being, (iii) Industry, Innovation, and Infrastructure, (iv) Life below Water, (v) Life on Land

Market Readiness: High

Growth Potential: High

Critical SDG impact areas: (i) Zero Hunger, (ii) Good Health and Well-Being, (iii) Industry, Innovation, and Infrastructure, (iv) Reduced Inequalities, (v) Life Below Water, (vi) Peace, Justice, and Strong Institutions, (vii) Partnerships for the Goals

Market Readiness: Medium

Growth Potential: Medium

Critical SDG areas: (i) Zero Hunger, (ii) Good Health and Well-Being, (iii) Industry, Innovation, and Infrastructure, (iv) Reduced Inequalities, (v) Life below water, (vi) Life on Land, (vii) Peace, Justice, and Strong Institutions, (viii) Partnerships for the Goals

Ayala Foundation is the Corporate Social Responsibility arm of Ayala Corporation.

Ayala Corporation is one of the largest conglomerates in the Philippines with a diversified business portfolio. Ayala’s subsidiary Manila Water, a publicly-listed company, is the exclusive provider of water and used water services to over 6.0 million people in the Manila Water Concession. Its inclusive business model, Tubig Para Sa Barangay (TPSB) partners with local government units, NGOs and communities to design and implement water supply systems for underserved low-income households to access safe and affordable drinking water. The program has benefitted nearly 1.8 million people from marginalized communities since its launch in 1997.

Cargill aims to achieve 100% transparent, traceable and sustainable palm supply chain by 2020 through conservation of biodiversity, reduction of greenhouse gases, improvement of livelihoods and food security. The company helps farmers grow more and also connects them to broader markets. In Malaysia, Cargill helps smallholders achieve RSPO (Roundtable on Sustainable Palm Oil) certification. Over 260 farmers participate in the program, representing one third of all RSPO-certified independent smallholders in the country. In Indonesia, the company is engaging with more than 21,000 affiliated Indonesian smallholders to help them achieve and maintain RSPO and International Sustainability and Carbon Certification (ISCC) certification standards.

Coca-Cola, the world’s largest beverage company, is committed to creating economic opportunities for everyone associated with its supply chain, including women and smallholder farmers. In 2013, the company launched EKOCENTER project – a global sustainability initiative that aims to provide socio-economic benefits while also encouraging entrepreneurship and sustainable growth. Under the project, solar-powered EKOCENTER kiosks have been established in Sub-Saharan Africa and Southeast Asia. These kiosks operate as a cross between a community centre and a general store, and help meet the needs in some of the most remote regions. Primarily owned by women from local communities, the kiosks rely on partnerships to operate sustainably. Since 2015, over 3000 women have directly benefited from these programs.

Covestro, a supplier of high-tech polymers, has its target to reach and economically benefit 10 million people in the underserved markets globally by 2025 through multiple business solutions including post-harvesting, affordable housing, and sanitation. The company’s inclusive business arm, Covestro Inclusive Business in ASEAN, works towards distributing and selling valuable products to people in need in low income markets. To achieve this, Covestro IB collaborates with partners to facilitate social transformation. In the agricultural sector, the company has reached out to over 100,000 farmers and families, and has installed more than 550 Solar Dryer Domes across Thailand, Indonesia, Myanmar, Vietnam and the Philippines.